Topic 4 Part A

Question 1

What benefits should be provided?

Answer 1

1. Required Benefits: Social Insurance Programs

2. Basic Set of Benefits: Needs Analysis

Question 2

Needs Analysis

Answer 2

1. Needs of EEs

2. Loss Exposures

Question 3

Needs Analysis: Loss Exposures

Answer 3

1. Medical Expenses

2. Loss of Income

Question 4

Beyond Basics Analysis

Answer 4

1. Competition in particular industry for EEs

2. Bench Marking Analysis

Question 5

Three Ways to Involve EEs in Design Process

Answer 5

1. EE surveys.
2. Benefit committees
3. Focus Groups

Question 6

Equity Issue of Design Process

Answer 6

Different benefit packages for EEs in different geographic regions

Question 7

Shifts in Design Proces

Answer 7

1. Used to be favorable tax treatment
2. Now the needs of EEs are driving benefit plan design
3. TEA: Transportation Equity Act

Question 8

Work Life Benefits

Answer 8

1. Child Care
2. Convenience Benefits: Dry cleaning, banking
3. Flexible Work Arrangements

Question 9

Who Should Be Protected/Covered?

Answer 9

1. Full Time/Active EEs
2. Dependents of Full Time/Active EEs
3. Part Time/Active EEs
4. Former EEs and Dependents
5. Terminated EEs and Dependents
6. Disabled EEs and Dependents

Question 10

Full Time/Active EEs

Answer 10

• Definition of Full Time/Active EEs

Question 11

Depends of Full Time/Active EEs

Answer 11

1. Spouse
   - Legal Marriage
   - Domestic Partnerships
   - Children: Define maximum age of eligibility

Question 12

Former EEs & Dependents

Answer 12

• Pension Plan/Retirement Plan
• OASDI
• Post Retirement Health Benefits (PPHB)
• PRLB

Question 13

Terminated EEs/Dependents

Answer 13

• Severance Package
• UC Insurance
• COBRA Access, continuation coverage

Question 14

Disabled EEs and Dependents

Answer 14

• Long and Short term disability
• Access to COBRA coverage
• Continue health coverage
• Continue Life insurance coverage
• 401(K) contributions and matches from ER??

Question 15

What Options Will EEs Have?

Answer 15

1. Traditional Design Plan
2. Plans With Minimal Choice
3. Opportunity to Purchase Optional Benefits
4. Voluntary Benefits
5. Section 125 Plan

Question 16

Traditional Plan Design

Answer 16

• EEs have few options or choices if any
• “One Size fits all”
• Smaller ERs/Unionized Plans

Question 17

Plans With Minimal Choice

Answer 17

• Retirement, life, disability, dental, AD&D

- Choice of Healthcare Plans

Question 18

Opportunity to Purchase Optional Benefits or Additional Benefits

Answer 18

• Optional: Long Term Disability (LTO)
• EE pay all basis: Not taxed on benefits
• AD&D coverage: EE pay all basis

Question 19

Dependent Coverage

Answer 19

• Health Insurance
• Life Insurance
• EE pay all basis: spouse/eligible dependents

Question 20

Voluntary Benefits

Answer 20

• Any benefit offered through an ER on a group basis
• EE pays the full cost
• e.g. long term disability, AD&D
• Classic Voluntary Benefits

Question 21

Classic Voluntary Benefits

Answer 21

• Group Auto Insurance

- Affinity Group

Question 22

Affinity Group

Answer 22

• Markets to an already existing group
• Homeowners, Temple EEs
• Pet Insurance
• Group Universal Life (GUL)
• Mini Med or “Dread Disease Policy”